Wed, Aug. 17, 11:16 AM
- Soft earnings reports from Target, Lowe's, and Staples are tainting the retail sector today.
- A loose theme among the trio is that they are feeling the impact of general store traffic pressure on one front and under-performing Amazon on the e-commerce side (or Home Depot in the case of Lowe's).
- Notable movers include Office Depot (ODP -7%), Pier 1 Imports (PIR -2.7%), Haverty Furniture (HVT -1.1%), Sears Holdings (SHLD -6.5%), Stage Stores (SSI -3%), Nordstrom (JWN -2.4%), Tilly's (TLYS -0.8%), Zagg (ZAGG -2.7%), Party City (PRTY -1.3%), J.C. Penney (JCP -4.4%), Restoration Hardware (RH -4.1%) Bed Bath & Beyond (BBBY -1.9%), Williams-Sonoma (WSM -2.8%), and Kohl's (KSS -2.3%),
- Looking ahead, Wal-Mart (WMT -0.3%) reports earnings tomorrow before the bell. The same-store sales bar is relatively low after the company guided for a 1% gain for U.S. SSS and with the consensus estimate of analysts even lower at +0.9%. Perhaps more important than Q2 numbers will be the comments from Wal-Mart management on the Jet.com integration and the impact of higher base wages.
Wed, Aug. 3, 8:54 AM
- The changes at Office Depot (NASDAQ:ODP) include the return of a quarterly dividend ($0.025/share) and a plan to close over 300 additional stores.
- The store closings represent just under 20% of the total stores the company had open at the end of Q2.
- Office Depot also increased its share buyback allowance to $250M from $100M.
- Previously: Office Depot misses by $0.03, beats on revenue (Aug. 3)
- Previously: Office Depot discloses three-year plan (Aug. 3)
- Shares of ODP are up 3.95% premarket to $3.42.
Tue, May 17, 10:25 AM
- Office Depot (ODP -7.4%) is sharply lower after officially announcing that merger plans with Staples are being abandoned.
- The next step forward for the company is a strategic review of various capital structures and shareholder return alternatives. Bain has been hired to help with the process.
- A $1.2B credit facility was extended for another five years as another post-Staples adjustment.
- Shares of ODP set a new 52-week low of $3.18 today.
- Previously: Office Depot lays out plans after ending Staples merger (May 17)
Wed, May 11, 12:49 PM
Wed, May 11, 9:12 AM
Tue, May 10, 7:09 PM
- In a quick response after news broke of a preliminary injunction blocking a merger between Office Depot (NASDAQ:ODP) and Staples (NASDAQ:SPLS), Office Depot says it won't appeal the ruling.
- That means the two will terminate their merger effective May 16.
- “While we are respectful of the Court’s decision to grant the FTC’s request for a preliminary injunction to prevent our merger with Staples, we are disappointed by this outcome and strongly believe that a merger would have benefited all of our customers in the long term," said Office Depot CEO Roland Smith.
- "We do not intend to appeal the Court’s decision and the two companies plan to terminate the merger agreement effective May 16, 2016."
- Smith added that after the formal deal termination, Office Depot would host an investor call May 16 to "discuss next steps in our go-forward strategy."
- After-hours trading was halted due to volatility with Office Depot down 26.3% and Staples down 10.1%.
- Updated 7:19 p.m.: Staples adds its statement. It will pay Office Depot a $250M break-up fee, and terminate its plan to sell $550M in large corporate contract business to Essendant. It will increase focus on North America midmarket customers, explore strategic alternatives for Europe, and launch a $300M cost-cutting plan.
Tue, May 10, 6:44 PM
- Office Depot (NASDAQ:ODP) has nosedived, -26.3% after hours, and Staples (NASDAQ:SPLS) down 5.4%, as a District Court judge issues a preliminary injunction blocking their $6.3B merger, according to Reuters.
- Options traders were ready for some volatility as they awaited today's ruling, on whether the court would grant a request from the FTC to hold off on the deal until an administrative judge could review it.
- While this is a preliminary injunction, any drawn-out litigation could end up killing a deal.
- Trading in the shares has been halted at those marks.
- Updated 6:55 p.m.: It doesn't look good for the buyout, since Staples CEO Ron Sargent had said in March he would likely scrap the plan if Judge Emmet Sullivan granted this preliminary injunction.
Mon, May 9, 5:40 PM
Tue, Mar. 29, 9:24 AM
- Staples (NASDAQ:SPLS) is on the verge of winning the legal case against the FTC over its bid to buy Office Depot (NASDAQ:ODP), sources tip New York Post.
- The judge in the case is expected to rule on an outright dismissal motion as earlier as next week.
- The Amazon defense by Staples appears to be working, especially after the Seattle company said it was coached by the government to lie. Usually court testimony in this type of case is sealed, but Judge Emmet Sullivan ordered it released.
- "The public ought to know that the government wanted Amazon to say some things that weren’t true," stated Judge Sullivan.
- SPLS +1.83% premarket to $11.10. ODP -1.75% to $7.31.
Mon, Mar. 28, 10:09 AM
- Office Depot (NASDAQ:ODP) is up 5.4% in early trading on more enthusiasm over the stance of judge weighing the FTC's argument against the ODP-Staples merger.
- Staples (NASDAQ:SPLS) is 1.9% higher to follow on last week's late rally.
- As more of the courtroom back-and-forth has been revealed, it's become more apparent that the Amazon argument may play for Office Depot and Staples.
- "The court exchange revealed pretty clear evidence that Amazon is, actually, well on its way to establishing a robust business in the space," notes RetailDive.
Thu, Mar. 24, 9:18 AM
Wed, Mar. 23, 5:38 PM
Wed, Mar. 23, 4:53 PM
- Dow Jones reports the judge handling the FTC's lawsuit to prevent Staples' (NASDAQ:SPLS) planned merger with Office Depot (NASDAQ:ODP) rebuked the FTC over its legal tactics, and accused the agency of pressuring Amazon to provide favorable testimony.
- Office Depot is up 5.7% after hours to $6.70. Staples is up 1.3% to $10.18.
- Prior Staples/Office Depot coverage
Tue, Mar. 22, 5:41 PM
Thu, Mar. 17, 9:15 AM| Thu, Mar. 17, 9:15 AM
Thu, Mar. 17, 9:01 AM
- There's buzz in the office supply sector after the New York Post reports that Amazon (NASDAQ:AMZN) may make an offer for the corporate business unit of Office Depot (NASDAQ:ODP). The e-commerce giant is seen using the ODP corporate accounts to jump-start its new office supply business.
- A deal to offload the business would clear a path for the merger between Office Depot and Staples (NASDAQ:SPLS).
- Sources tell the Post that an activist investor with a significant stake in ODP is pushing for the transaction.
- Office Depot is up 7.79% premarket to $5.67. Staples is 1.86% higher at $9.87. AMZN is tilting lower, down 0.66% to $570.50.
Office Depot, Inc. engages in the provision of providing products, services, and solutions for the workplace such as office, home, school, or car. Its portfolio of brands includes Office Depot, OfficeMax, OfficeMax Grand and Toy, Viking, ATIVA, TUL, FORAY and DiVOGA. It operates through the... More
Industry: Specialty Retail, Other
Country: United States